An enhanced house price index model in Malaysia: Maqasid Shariah perspectives

The house price index (HPI) has become an important tool for measuring housing market performance in Malaysia. Having reviewed the current model of the Malaysian House Price Index (MHPI), it was discovered that HPI is constructed based on demand-driven variables. Previous studies alluded that both m...

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Main Author:	Nik Nor Amalina, Nik Mohd Sukrri
Format:	Thesis
Language:	eng eng
Published:	2023
Subjects:	BP174 The practice of Islam HB Economic Theory
Online Access:	https://etd.uum.edu.my/11196/1/s99241_01.pdf https://etd.uum.edu.my/11196/2/s99241_02.pdf
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id	my-uum-etd.11196
record_format	uketd_dc
spelling	my-uum-etd.111962024-06-23T03:17:34Z An enhanced house price index model in Malaysia: Maqasid Shariah perspectives 2023 Nik Nor Amalina, Nik Mohd Sukrri Mohd Yusof, Rosylin Abd Wahab, Norazlina College of Business (COB) College of Business BP174 The practice of Islam HB Economic Theory The house price index (HPI) has become an important tool for measuring housing market performance in Malaysia. Having reviewed the current model of the Malaysian House Price Index (MHPI), it was discovered that HPI is constructed based on demand-driven variables. Previous studies alluded that both macroeconomic and supply factors should be incorporated into the HPI construction to obtain a better reflective indicator. Therefore, this study aims to construct an enhanced HPI model in Malaysia. The time series analysis technique known as the autoregressive distributed lag model (ARDL) was adopted to analyse the short and long-run dynamics between the variables. The existing determinants of HPI were first examined. The data employed in this study was quarterly data from the first quarter of 2008 to the fourth quarter of 2018. The findings revealed that the construction cost and home financing are significant in determining HPI, while the overnight policy rate and land supply are insignificant. Hence, a new enhanced HPI incorporating new demand and supply variables was developed using the Laspeyres approach. The analysis shows that the enhanced HPI has also recorded the same trend but with a lower price value than the current MHPI. This enhanced HPI model is able to contribute a better indication of the real housing market situation in Malaysia, which is more reflective of the macroeconomic fundamentals and housing market variables. The implementation of price benchmarks is another contribution as it is consistent with the goals of Shariah to create justice and fairness in financial transactions and serves as a mechanism to prevent people from facing distress and hardship. This study has an important policy implication for the involved parties to have some policy ramifications to further monitor and take appropriate measures in controlling property prices. 2023 Thesis https://etd.uum.edu.my/11196/ https://etd.uum.edu.my/11196/1/s99241_01.pdf text eng 2025-08-25 staffonly https://etd.uum.edu.my/11196/2/s99241_02.pdf text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Mohd Yusof, Rosylin Abd Wahab, Norazlina
topic	BP174 The practice of Islam HB Economic Theory
spellingShingle	BP174 The practice of Islam HB Economic Theory Nik Nor Amalina, Nik Mohd Sukrri An enhanced house price index model in Malaysia: Maqasid Shariah perspectives
description	The house price index (HPI) has become an important tool for measuring housing market performance in Malaysia. Having reviewed the current model of the Malaysian House Price Index (MHPI), it was discovered that HPI is constructed based on demand-driven variables. Previous studies alluded that both macroeconomic and supply factors should be incorporated into the HPI construction to obtain a better reflective indicator. Therefore, this study aims to construct an enhanced HPI model in Malaysia. The time series analysis technique known as the autoregressive distributed lag model (ARDL) was adopted to analyse the short and long-run dynamics between the variables. The existing determinants of HPI were first examined. The data employed in this study was quarterly data from the first quarter of 2008 to the fourth quarter of 2018. The findings revealed that the construction cost and home financing are significant in determining HPI, while the overnight policy rate and land supply are insignificant. Hence, a new enhanced HPI incorporating new demand and supply variables was developed using the Laspeyres approach. The analysis shows that the enhanced HPI has also recorded the same trend but with a lower price value than the current MHPI. This enhanced HPI model is able to contribute a better indication of the real housing market situation in Malaysia, which is more reflective of the macroeconomic fundamentals and housing market variables. The implementation of price benchmarks is another contribution as it is consistent with the goals of Shariah to create justice and fairness in financial transactions and serves as a mechanism to prevent people from facing distress and hardship. This study has an important policy implication for the involved parties to have some policy ramifications to further monitor and take appropriate measures in controlling property prices.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Nik Nor Amalina, Nik Mohd Sukrri
author_facet	Nik Nor Amalina, Nik Mohd Sukrri
author_sort	Nik Nor Amalina, Nik Mohd Sukrri
title	An enhanced house price index model in Malaysia: Maqasid Shariah perspectives
title_short	An enhanced house price index model in Malaysia: Maqasid Shariah perspectives
title_full	An enhanced house price index model in Malaysia: Maqasid Shariah perspectives
title_fullStr	An enhanced house price index model in Malaysia: Maqasid Shariah perspectives
title_full_unstemmed	An enhanced house price index model in Malaysia: Maqasid Shariah perspectives
title_sort	enhanced house price index model in malaysia: maqasid shariah perspectives
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2023
url	https://etd.uum.edu.my/11196/1/s99241_01.pdf https://etd.uum.edu.my/11196/2/s99241_02.pdf
_version_	1804888216822611968

An enhanced house price index model in Malaysia: Maqasid Shariah perspectives

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